Bangkok’s condo market has boomed in 2017, hitting a record high in the past decade for the number of new projects launched and with the luxury segment continuing to boom, according to research from the property marketing firm Nexus.
The Phra Khanong to Suan Luang area remained attractive with the largest number of new project launches, said the marketing firm. The Pathumwan to Ratchathewi area saw the highest increase in prices with a rise of up to 16 per cent. The 2018 market will continue growing with an increase of over 10 per cent in the condominium supply, said Nexus.
Nexus said that a “transition” situation will impact the future residential trend, driven by various factors including ongoing foreign investors, an exponential growth in CLMV investments in Bangkok, the ageing population, and technological developments that influence new-property development.
Nalinrat Chareonsuphong, managing director of Nexus Property Marketing Co Ltd, said the company’s research on the Bangkok 2017 condo market and trends emerging in 2018 found that the past year has experienced strong competition among developers.
Supply of condos, launched by both large and individual developers, totalled 62,700 units across 128 projects, hitting a new high record for the past 10 years. New project launches accounted for a large part of the total. The year also saw a large number of big projects under development with a resulting supply accumulation of 550,000 units in the market.
The number of new condominium launches was 15 per cent higher than the average number in the past five years (the average number of new condominium supply launched in 2013-2017 was approximately 53,600 units per year) and the new projects continued expanding to locations surrounding the inner city.
The top three locations with the highest number of condominium supply increases are: Phra Khanong - Suan Luang with 14,400 units or a rise of 23 per cent; Phaya Thai - Ratchadaphisek with 13,200 units and an increase of 21 per cent; Thon Buri - Petchakasem with 8,900 units or a growth of 14 per cent. The total number of new buildings in these three locations accounts for 58 per cent of the total number of new condominium units launched in Bangkok.
The condominium market in the past five years has expanded to outer city locations. The zone with the highest condominium growth is Thon Buri to Petchakasem, with a rise of 107 per cent, followed by Tiwanon to Rattanathibeth (76 per cent) and Chaeng Wattana to Pak Kret (68 per cent) when compared with 2016.